HUDA seeks to enter into joint Development with OMAXE for Kokapet Land.
DC 28.01.08

New Delhi-based real estate developer Omaxe Ltd is likely to get 75 acres of prime land in Kokapet at one-third the market price. After giving preferential treatment to Unitech, Hyderabad Urban Development Authority has set the stage for giving away the Kokapet land to Omaxe under joint development which would relieve the company of the burden of investing hundreds of crores of rupees on purchase of land.

The company proposed to pay Rs 4 crore per acre as upfront payment and offered 26 per cent share in the built up space. At a recent auction, Omaxe paid Rs 12 crore per acre for a 25-acre plot in Kokapet. Interestingly, Huda took the decision to process the Omaxe request without the knowledge of the municipal administration and urban development department or the Chief Minister’s Office. “It must be a decision taken by Huda itself,” said a source in the CMO.

“There has been poor response to auctions and Omaxe alone bid for 25 acres. Subsequently, the company came out with the joint development proposal. We will examine the proposal in detail,” said Mr Jayesh Ranjan, Huda managing director. Several developers, meanwhile, are crying foul over increasing cases of preferential treatment to select companies. They argue that several companies would be willing to take up the project under joint development.

“Instead of auctioning land, Huda can invite applications from the bidders for joint development,” said a developer. Sources said Huda would as an alternative put Omaxe’s joint development proposal to the Swiss Challenge method wherein prospective bidders would be asked to match the Omaxe proposal. The company will once again be given an opportunity to grab the project by matching the offer made by other companies. “There is no credibility in this, given the experience of Srinagar township which the Ramky group secured in the Swiss Challenge method. Huda will set tailor-made conditions to suit the original proposer,” a developer complained